Sui Teams Up with Babylon Labs and Lombard to Introduce Bitcoin Staking

Sui, a rapidly growing blockchain platform, is entering the Bitcoin staking market through strategic partnerships with Babylon Labs and Lombard Protocol. This collaboration aims to tap into the vast $1.8 trillion Bitcoin market, with a focus on staking as a major attraction for Bitcoin holders. By offering Bitcoin staking, Sui hopes to expand its decentralized finance (DeFi) ecosystem and provide users with opportunities to stake their Bitcoin while gaining access to additional financial services.

Through this partnership, Bitcoin holders who stake their BTC will receive LBTC, a liquid staking token minted natively on the Sui network. This token, provided by Lombard Protocol, allows for the liquidity of Bitcoin to be unlocked and utilized within the DeFi ecosystem. This initiative is set to begin in December, offering a new way for users to interact with their Bitcoin and participate in the growing world of DeFi on Sui.

The collaboration also involves Cubist, a hardware-backed key management platform that provides a low-latency, multi-chain signer, facilitating seamless and secure transactions. Cubist already manages over $1 billion in non-custodial Babylon staking and BTC collateral for Lombard, ensuring that users’ assets are protected with high security and low latency.

Jacob Phillips, the co-founder of Lombard, emphasized the immense potential of Bitcoin’s $1.8 trillion market capitalization. He believes the partnership will enable Bitcoin holders to engage in the next generation of on-chain finance, offering both security and liquidity. The aim is to allow Bitcoin holders to participate in DeFi without having to compromise the safety and liquidity of their assets.

Sui, launched in 2023, has been rapidly growing within the DeFi space. As of now, it holds $1.7 billion in total value locked (TVL), according to data from DeFiLlama. The SUI token has experienced significant growth, surging more than 380% over the past year, and reached an all-time high of $3.92 on November 17, 2024.

With this new initiative, Sui is positioning itself as a key player in the DeFi space, seeking to bridge the gap between Bitcoin and decentralized finance by offering secure and liquid staking options for Bitcoin holders. By doing so, it hopes to foster increased DeFi adoption and further grow its ecosystem, ultimately benefiting both Sui users and the broader crypto community.